Home Loans by Catalina
Thinking about Refinancing?
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Decrease your monthly payment
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Convert your adjustable-rate mortgage (ARM) to a fixed-rate loan, which will keep your payments safe from possible interest rate increases
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Shorten your loan’s term to save even more money
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Combine a first and second lien into a single loan for simplicity and savings
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Remove your private mortgage insurance
How do I know when to refinance?
If your home or current mortgage meets one or more of these three conditions, it’s a good time to consider refinancing.
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Increased home value. If conditions in your local housing market have increased your home’s value, your equity went up too. With more equity, you could get a new loan on better terms. Or you can convert that equity into cash to use however you like.
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Interest rates are low. As a general rule, if you can get an interest rate at least half a percent lower than what you’re currently paying, it’s good idea to consider refinancing. If you can get more than a percent, it’s a great idea. A lower rate could get you a shorter term, lower monthly payments, savings over the life of the loan – maybe even all three.
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Your current mortgage is relatively new. In the early part of many mortgages, most of the monthly payment goes toward interest. If you can get a new mortgage that applies more of your payments toward the principal, that’s good. You’ll build equity faster. It’s like paying money to yourself.
